Which family at some point or the other does not face financial problems? Hard times are a part of everyone’s life. These problems sometimes become acute after retirement, when income becomes a problem and the small pension one gets is not enough for a good quality of life. Life mortgages or home reversion home equity plans are a good way to live life comfortably after retirement.

If you want to buy yourself a new car, or want to spend more quality time with your family now that you are retired, you can get an equity release plan which will help you out. A home equity release plan can bring these small and yet priceless dreams to life.

How do they work?

Home equity release is available in offer a number of schemes. These schemes have different clauses and rates but work on one common principle. You can get a loan amount of an amount which is equal to a certain share in your property. This loan amount can then be claimed back by the insurance company at the time of the owner’s death.

When can you apply for these schemes?

The minimum age of a person who can apply for such a scheme is set. For example, in all schemes the person has to be of 60 years of age or older to be eligible for a home equity plan.

Apart from age, another factor which decides a person’s eligibility for these schemes is the market value of the property they have. You have to have a reasonable amount of equity to be able to get a share of its value as a loan amount. These plans also provide an income amount that you may choose to get a lump some or as a regular monthly income.

These are lifetime mortgages and home reversion plans. To understand their features and risks, ask for a personalised illustration.